08 June, 2007

USA: Tennessee 2006 revenues from beer tax highest ever

Tennesseans paid more than $200 million in beer taxes in 2006, a record high for the state, according to the Tennessee Malt Beverage Association, Memphis Business Journal published June 7.

The local 17 percent beer tax generated more than $112 million in 2006. That combined with the state beer tax of $17.8 million and the federal beer tax of $74.9 million produced a total of $205 million.

Tennessee has the third-highest beer tax in the nation and the local tax has generated more than $2.3 billion in tax revenues since its 1954 establishment.

Tennessee cities and counties will receive more than $112 million, the local portion, from the tax to fund their respective budgets. Shelby County received $1.2 million in 2006 from the local beer tax paid by local beer distributors. Memphis received $14.9 million last year from the tax. Arlington received $127,709; Bartlett, $629,702; Collierville, $438,304; Germantown, $356,196; and Millington received $405,086.

The beer industry employs more than 28,000 people in Tennessee, directly or indirectly, according to the Beer Institute. The industry generates more than $788 million annually in wages and benefits for the Tennessee economy.

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